Monday, September 18, 2006

Monday - It's a Wrap

IMO oil was a one day story - today and tomorrow we will be back to normal or what passes for normal these days. In addition, the Fed is going to pass on interest rates again this time around and lower a quarter right after the election to smooth the holidays for the retailers.

A pass on interest rates on Wednesday means a boom is coming so I hope you will be positioned to take advantage of it. The best position, of course, is out of the market and taking a nap when the announcement is made. I'm going to hold some JBLU through the announcement with the hopes that I'll catch a significant bounce. Actually I'm hoping that oil will retreat tomorrow and JBLU which moved about 20 cents today will move a half tomorrow in the right direction.

The VIX barely moved today and the three sisters finished the last hour painting white candles. The up/down ratio is 44% which is a little better and the new 20 day highs have returned to 641 from 873 on Friday. The new 20 day lows however also declined from Friday to 225. All of which is suspicious and again indicates that there just isn't much out there worth a bid. My guess a sideways market again tomorrow with some bullish inclination.

I'm going to give the magic coin today because he was almost right which makes him 7 and 2 and far better than your faithful correspondent. For tomorrow the coin says ... tails - bear market.

We'll see.

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